The sun. [volume] (New York [N.Y.]) 1833-1916, 1887-11-13
THE TELEPHONE INVESTIGATION
witnesses Ceuapiair OF Aiterea Exaotiens BIZ
the Sell Cernpany.

the Boii Csr.pany.
Lawrence Camp, who has stood by all the
telephone companies 40 far in their testimony
before the Assembly Investigating Committee,
was on hand again yesterday to coach the Wit
ncsses for tho Westchoster Telephone Com
pany. Charles II. Gutter appeared rs Secrc-
tary and Treasurer. IIe had testified ae Presi-
dent OF tho two previously examined COM
panies, the Staten Island and the New York
and Pennsylvania Mr.. Henry L. storke. Vice.
President, was on the stand for the Westches-
ter Company. He Is also Secretary and Treas
utter Of the Hudson River Telephone Company,
Vice-President OF the Central New York Tele-
phone Company. and Vice. President OF the New
York and Pennsylvania Company He said the
company now under investigation was formed
originally In July. 1882. The district, which
comprises those portions OF Westchester and
Rockland counties, Within a radius Of thirty
three miles from the New York City
Hail. was then covered by the lines Of
the Metropolitan District Company. This COM
pany was an offshoot OF the Metropolitan Com
pany. operating the lines Of tho latter outside
Of the city Of New York. The Westchester
Company was capitalized at 100000. OF this
$4,000 was cash. $4,000 was paid In stock for
the property. and 100000 in stock went for
franchise to the Metropolitan Telephone Com
in Jas 5 Ro r ss
senting the Hudson River Telephone Company.
bought CHI AZ all tho stock not paid for franchise
Mr. storEe was $4,000 Tho. same name
tSs now The had ng ods
in It and It's stock was held wholly BY the .Hud-
son River Telephone Company and the Metro
w hs Se rTehons mas NO
Through It's franchise the Metropolitan Com.
%G e
Company specified that the Westchester Com
pany should pay the former royalty Of s14 a
ings, one-hali Of the Income derived from tele-
graph business. and 80 per cent, of all toll line
business between the companys territory and
=" Can that be correctp" asked Chairman
AiinTSTorth IN surprise.
The American Bell Company. over and above
Se right way tho
i business: When the COMPANY was formed
lions, and fifty miles Of extra territorial wire. Tp
to July last the property had increased t0 ten
are 16O miles q pole lines. with sSs miles Of
81 Z a s fs .s sss Ta s
ahsSs s ssss
have, mostly been spent in construction.
1885. They were 5000 each. The construc-
net Of It's iiab III
are s4s;o2s:55 including a loan q $4,000. It's
erty not vet In use are $50. Os2.2 40 The relation
$4,000 Is IN average Of 1854 per cent. year.
The relation OF profit to the cash capitalization
plus the stock paid for franchise is an average
Of 100000 is considered. however,
the yearly profit averages but &c per cent Tho
dividends paid average annually $40 Of one
per cent on the whole capital.
Mr. Storke said the exactions OF the Bell
Company were too great burden for the local
to bear even at their high rate Of
He thought the toll system was the
only absolutely fair and equitable system. The
effect OF it's substitution for the present fiat
rate system would be to largely increase the ,
cost to tho extensive users. and correspond
ingly decrease the cost to small users His !
led him to believe that from rs per
cont. to a third Of the messages transmitted
paid the companies nothing. The Bell patent,
he thought. expired In March. 1893. and the /;
result would surprise everybody. 1t would |
compel n very large expenditure Of money for |
now lines and a decided lowering In rates. At |
present he said the premiums paid by the |
Westchester Company through the Metropoli- |
tan Company to the Bell people were actually |
greater than the net earnings.
The Hudson River Telephone Company will |
Monday.